You Must know How a Free CIBIL Report can Help to Get a Home Loan
Nov 24, 2018 Home Loan
Recently a seminar was held on 'Transforming Rural India through Financial Inclusion'. The Reserve Bank of India Governor Mr Raghuram Rajan announced about the Credit Information Bureau of India Limited (CIBIL) norms. He mentioned that CIBIL would provide one free credit report per year to individuals. According to him, the CIBIL report would help the loan seekers to improve their credit rating. Also, the petition can be presented by an individual in case of any discrepancies.
This is great news for home loan seekers as it used to cost INR 550 for his one-time credit score and report from the CIBIL.
Here are some facts about how the free CIBIL report can help home loan seekers.
This is great news for home loan seekers as it used to cost INR 550 for his one-time credit score and report from the CIBIL.
Here are some facts about how the free CIBIL report can help home loan seekers.
Know about the concept of CIBIL
CIBIL keeps all the information about your credit details of all banks and financial institutions. CIBIL collect information from the lenders (both banks and financial institutions), and this information helps in using it for any credit-decision making and lending purposes. The lenders share this information with CIBIL on a monthly basis.
Applying for a home loan? Know how this report will help
- Most of us do not check out credit scores and history before we go for applying for a home loan. You must understand that it is vital information based on which your application will be either approved or rejected. CIBIL report has this information.
- You do not have to pay INR 550 to generate the CIBIL report. The credit manager will anyway generate your CIBIL report for credit information and the score for home loan seekers as a part of the credit appraisal process. So, you would anyway know your score and hence spending that about would be unnecessary.
- You must understand that generally, it takes 60-90 days to get an updated on CIBIL. So, if there is any discrepancy in the CIBIL report, then the overall process will be delayed to get a home loan. So, it is essential that you know your credit information well in advance so that if required action can b taken to rectify errors in the CIBIL report if any. It could be even simple information, for instance, your name or even your address.
- A free CIBIL report can also help you understand the overall loan sanction process from even your lender's point of view. This will help you create a good impression on your lender for getting a new credit of your credit score is good, and the credit history does not have any over dues or non-payment information. That will build trust on your lender.
It is always good to know about your credit information.
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